Union Pacific logged a -0.6% change during today's afternoon session, and is now trading at a price of $230.03 per share.
Union Pacific returned gains of 10.0% last year, with its stock price reaching a high of $240.48 and a low of $183.69. Over the same period, the stock underperformed the S&P 500 index by -8.0%. As of April 2023, the company's 50-day average price was $213.05. Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. Based in Omaha, NE, the large-cap Industrials company has 31,800 full time employees. Union Pacific has offered a 2.2% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $22,832 | $21,708 | $19,533 | $21,804 | $24,875 | $24,140 |
| Revenue Growth | n/a | -4.92% | -10.02% | 11.63% | 14.08% | -2.95% |
| Gross Margins | 37% | 39% | 40% | 43% | 40% | 38% |
| Operating Margins | 37% | 39% | 40% | 43% | 40% | 38% |
| Net Margins | 26% | 27% | 27% | 30% | 28% | 26% |
| Net Income (MM) | $5,966 | $5,919 | $5,349 | $6,523 | $6,998 | $6,365 |
| Net Interest Expense (MM) | $870 | $1,050 | $1,141 | $1,157 | $1,271 | $1,342 |
| Depreciation & Amort. (MM) | $2,191 | $2,216 | $2,210 | $2,208 | $2,246 | $2,298 |
| Earnings Per Share | $7.91 | $8.38 | $7.88 | $9.95 | $11.21 | $10.41 |
| EPS Growth | n/a | 5.94% | -5.97% | 26.27% | 12.66% | -7.14% |
| Diluted Shares (MM) | 754 | 706 | 679 | 655 | 624 | 573 |
| Long Term Debt (MM) | $22,391 | $25,200 | $26,729 | $0 | $0 | $0 |
Union Pacific's Valuation Is in Line With Its Sector Averages:
Union Pacific has a trailing twelve month P/E ratio of 20.4, compared to an average of 22.19 for the Industrials sector. Based on its EPS guidance of $11.32, the company has a forward P/E ratio of 18.8. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 4.7%. On this basis, the company's PEG ratio is 4.37, which suggests that it is overpriced. Furthermore, Union Pacific is likely overvalued compared to the book value of its equity, since its P/B ratio of 10.01 is higher than the sector average of 4.06.
Union Pacific Has an Average Rating of Buy:
The 26 analysts following Union Pacific have set target prices ranging from $182.0 to $282.0 per share, for an average of $240.65 with a buy rating. As of April 2023, the company is trading -11.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Union Pacific has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 80.9% of the company's shares, and the insider ownership rate stands at 0.24%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $13,280,489,177.
